Pros of Renting
Renting can be very affordable, especially to renters who wish to live closer to the city.
Maintenance of the property is usually left up to the landlord and their rental agent.
The lower upfront cost is a benefit to renters.
If you are house sharing, the cost of renting can be even cheaper, with the splitting of bills and sharing of other costs.
Rental contracts are usually only 6 to 12 months in duration, which gives you flexibility.
Cons of Renting
Renters will be paying someone else's mortgage, which ends up being “Dead Money”. Therefore, renter’s money will not increase or have no investment opportunity.
There is no security for the renter, as the landlord can end the lease agreement at a time that may not be convenient.
The renter will not be able to renovate or make substantial changes to the property, without the landlord's approval.
The landlord’s inspection or agent’s requests can be difficult to deal with.
Pros of Buying
Buying a property becomes an asset to the purchaser, that generally increases in value over time.
In certain cases, paying off a mortgage can be much cheaper than renting, in particular areas.
The property will be the buyer’s home, so they will be able to make changes to the property as they like.
It allows buyers to build equity, which gives them the option to purchase another property.
When buyers do not have enough funds to purchase a property, there are government grants which can assist certain buyers to reach their dreams of home ownership.
Cons of Buying
The upfront costs of purchasing a home, such as mortgage deposits and conveyancing fees.
The interest rate repayments are ongoing, which can add up to thousands of dollars.
If buyers miss regular mortgage repayments, it can lead to the home being repossessed.
The value of the property can decrease, especially when you sell the property at the time when the market is in a downturn.
The ongoing maintenance to the property could be very expensive depending on what issues you have to deal with.
As you can see, it is quite a hard decision to make whether to rent or buy, in this current real estate market. But Viva Property would like to assist you in making a wise choice as you look to move into a new home. Should you wish to know more then contact us now!